- Sharp rebound in 10-year US T-bond yield helps USD recover last week’s losses.
- Stronger greenback weighs on the pair.
- Coming up: JOLTS job openings from US and manufacturing sales from NZ.
After adding more than 100 pips last week, the NZD/USD reversed its direction on Monday pressured by the broad USD strength. As of writing, the pair was trading at 0.6615, losing 0.75% on a daily basis.
The decisive upsurge witnessed in the 10-year Treasury bond yields on the back of Trump administration reaching a deal with Mexico and suspending tariffs helped the greenback start the new week on a firm footing. The US Dollar Index, which tracks the dollar’s value against a basket of six major currencies, recovered from the multi-month low that it set last Friday at 96.46 and was last seen adding 0.36% at 96.91 while the 10-year T-bond yield was up 2.75%.
On the other hand, kiwi failed to capitalize on the fact that China has reported a larger-than-expected trade surplus in May.
The only data from the U.S. today will be JOLTS job openings and is unlikely to receive a reaction from the market. Wednesday’s inflation report will be the next significant catalyst for the greenback. In the early trading hours of the Asian session, first-quarter manufacturing sales, which is expected to show a 2% increase, from New Zealand will be looked upon for fresh impetus.
Technical levels to watch for
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